A simple explanation is you will always want to look at the centre of the screen. Therefore if you are stuck on the sides facing straight ahead your neck is going to be turned while playing, hardly ideal. Its as simple as that. CP needs to be designed so that all players are facing centre of screen, doesn't matter how big screen is you have to look at the centre to focus.
Also, I could be wrong but Smash isn't a game that can really be played properly with arcade controls. If you have a button mapping that works for you great, but for me it just felt bad. If cab is designed around Smash I would look into it.
Everyone has the right to go their own way with a build, if its what you want DO IT you can change the CP layout later if it doesn't work. But start cutting some wood or make some mock ups. Things will come to you as you are building, you will learn as you go. but overthinking and planning lead nowhere. This thread is nearly 4 pages in and no wood has been cut.